Log in/Register

Please log in or register to continue. Registration is free and requires only your email address.

Log in

Register

Emailrequired

PasswordrequiredRemember me?

Please enter your email address and click on the reset-password button. You'll receive an email shortly with a link to create a new password. If you have trouble finding this email, please check your spam folder.

Gita Gopinath is Professor of Economics at Harvard University. She is a visiting scholar at the Federal Reserve Bank of Boston, a research associate at the National Bureau of Economic Research, and a World Economic Forum Young Global Leader.

Sounds doable in theory, but it depends on two unlikely factors. First, firms would need to immediately factor the labor savings into pre-tax price reductions, rather than increasing profits or decreasing losses. Secondly, given the unlikelihood of these price reductions, the impact on consumer spending of higher post-tax prices might decrease aggregate demand enough to offset the benefits of the policy.

I rather think a lot more focus on structural as opposed to cyclical deficits, and wider EU support for the latter while discouraging the former, would do a lot to put things on firmer footing, while sending a coherent message to the bond markets.

We can forgive economists that they view everything through the glasses of financial and economical adjustments, believing they can solve all our problems by pushing here, pulling there and then everything falls into place again.

The global crisis is much deeper than a simple economic problem, in truth the economy is just a superficial representation of how we humans relate to each other and the real crisis is there, within our attitude, relationship towards each other.

But even if stay within the realms of economy and finances all the recommended solutions take it for granted that the present costant growth, expansive economical system can carry on, and we just need to find our way back to the higway that leads us to sunset, when more and more experts, studies shows that this approach is unsustainable at our present conditions we evolved into.

Sooner or later we have to face the signs and the facts that we have to build a completely new human system from the ground up, starting with the most important components: human beings and how they connect to each other, how they view each other and cooperate with each other in the closed, interdependent, integral system of the 21st century.

Everything else is secondary and depends on the fundamental principle of the human network in between us.